PENINSULA GOLF CLUB AND THE NEW COURSE AT WAINUI
Frequently
Asked Questions
June
2015
How
can the Board justify increased subs for “loyal” members in 2015-16 and again
in 2016-17 when it will end up with $11M in the bank?
For
the last 7 years, the subscriptions have been kept at the same amount because
of the $75,000 per annum paid by the developers and the Board reducing costs by
not replacing the General Manager and making some greens staff redundant.
Because of these factors we have not increased fees and remained debt free despite ever increasing running costs.
The Board believes some level of increase can be justified when we get to Wainui and a much better course.
Because of these factors we have not increased fees and remained debt free despite ever increasing running costs.
The Board believes some level of increase can be justified when we get to Wainui and a much better course.
We
will not end up with $11M in the bank.
It was always intended to spend some of the balloon payment on start up costs plus features that will save money in the long run such as solar panels, a heat transfer system and an enhanced bunker system, plus the clubhouse fit out and new machinery for looking after the course.
It was always intended to spend some of the balloon payment on start up costs plus features that will save money in the long run such as solar panels, a heat transfer system and an enhanced bunker system, plus the clubhouse fit out and new machinery for looking after the course.
The
balance will be retained and invested to provide an additional income stream
for the future.
What will happen re our subs if in fact we are not able to play
the full 18 holes at Wainui by April 2016?
All
the advice the Board is getting is that the course development is on track and
it will be ready for play in April 2016.
Friday 5 August 2016, 5 months later than was promised, members opening function was held at Wainui and the first rounds of golf at the new venue were played
What does annual CPI mean?
The
consumers price index (CPI) is calculated annually to track changes in the
price of a range of standard consumer items that New Zealand households buy. It
provides a measure of household inflation.
We
did consider pegging subscription increases to PPI (Producers Price Index)
since that has more bearing on the clubs costs such as fertiliser. However we
decided to go with CPI as that is more relevant to members spending power.
CPI
over the past few years has been very low because we have been in a period of
relative financial stability.
Why didn’t the Board release the projected budget for Wainui
along with the proposed membership subscriptions?
Because
the driver for setting the subscriptions was the market not the budget.
We took into consideration where we will sit alongside other similar quality courses and then what we considered to be a fair, but significant discount to reward members who have stayed with us through all the challenges.
We took into consideration where we will sit alongside other similar quality courses and then what we considered to be a fair, but significant discount to reward members who have stayed with us through all the challenges.
Subscription
income is only one part of the income stream at Wainui.
Other income streams are still being developed and assessed.
The Finance and Business plans need to be completed before a budget can be developed.
We are very focussed on completing these before the AGM in September.
Other income streams are still being developed and assessed.
The Finance and Business plans need to be completed before a budget can be developed.
We are very focussed on completing these before the AGM in September.
 |
Why is the Board proposing a fee structure for “loyal “members for the next 6 years when there are so many uncertainties about the set up costs of both the course and the clubrooms at Wainui?
Because
we wanted to suitably acknowledge the support of members who have stuck with
the club through very challenging times.
Why is the Board seeking Registrations of Interest for the golf
services and the catering when we already have people doing those roles at the
club currently?
The
services we require at Wainui are not the same as what we have at Red Beach so
we felt we needed to explore all options and get the best possible outcomes for
the club.
We expect to get applications from our current providers and are keen to see how they would like to approach the new opportunities and how they would like to help the club to step up and be even more successful.
We expect to get applications from our current providers and are keen to see how they would like to approach the new opportunities and how they would like to help the club to step up and be even more successful.
What is the extent of the reported “interest” in the new course
and is that already translating into new members?
Since
October last year we have had 65 new members join the club across all
categories.
In addition the staff started keeping the contact details for people who have been inquiring about joining up at Wainui.
Twelve people so far have been sent information about next year’s membership and fees.
In addition the staff started keeping the contact details for people who have been inquiring about joining up at Wainui.
Twelve people so far have been sent information about next year’s membership and fees.
Why is it necessary to entice early commitment of new members to
join up at Wainui?
Because
next year’s budget is going to be particularly challenging and we don’t want to
eat into the balloon payment any more than we have to.
For
the first 6 months of the next financial year we will continue to have
significantly reduced income from green fees and bar takings with only the 9
holes at Red Beach.
In
addition we will need to start taking on more green keeping staff so that they
can be trained up and ready for Wainui.
And we are hoping to have someone in place in October to help us hit the ground running as soon as we move.
And we are hoping to have someone in place in October to help us hit the ground running as soon as we move.
Do we really need a new identity when the Peninsula Golf Club
already has a brand?
Why do we need to pay outsiders to come up with a new name for the club?
Are you still intending to seek members input into the naming of the club at Wainui?
Why do we need to pay outsiders to come up with a new name for the club?
Are you still intending to seek members input into the naming of the club at Wainui?
The
move to Wainui is a unique opportunity that we have been given to change our
image to be more open and inviting to the public.
The name Peninsula Golf Club has served us well for nearly 60 years but it might not be the best name to realise the potential at Wainui.
But be assured we are keen not to lose the Peninsula legacy and it will be preserved at Wainui.
The name Peninsula Golf Club has served us well for nearly 60 years but it might not be the best name to realise the potential at Wainui.
But be assured we are keen not to lose the Peninsula legacy and it will be preserved at Wainui.
The
design company Milk has been engaged to work with us but they are doing much
more than coming up with a name.
Our brand is about the look and feel the club
wants to project and how that can help make the business of the club work
successfully.
Some
members have already been involved in helping the team from Milk get to know
our club and our needs and they are now in the early stages of researching and
developing three creative options.
The Board got a first look at these this week and we have asked for some visuals to go up in the clubhouse sometime over the next week.
We invite you to think about how these concepts make you feel and also what you think would appeal to your friends and family and make them want to come along to join you at the club.
We need our new club to be a more sociable place for a wider range of people and not just golfers.
The Board got a first look at these this week and we have asked for some visuals to go up in the clubhouse sometime over the next week.
We invite you to think about how these concepts make you feel and also what you think would appeal to your friends and family and make them want to come along to join you at the club.
We need our new club to be a more sociable place for a wider range of people and not just golfers.
What is the cost of the fit out?
That
has not been determined yet.
The clubhouse committee has met with a number of interior designers and we have just signed a contract with their preferred supplier of these services.
She will prepare the fit out plans for the café, lounge, conference room, members lounge and lobby.
She will also be responsible for procuring the furniture and fittings as required using her networks to access competitive pricing.
Part of her brief is to work with existing club memorabilia to relocate or redesign it to fit with the new space.
The clubhouse committee has met with a number of interior designers and we have just signed a contract with their preferred supplier of these services.
She will prepare the fit out plans for the café, lounge, conference room, members lounge and lobby.
She will also be responsible for procuring the furniture and fittings as required using her networks to access competitive pricing.
Part of her brief is to work with existing club memorabilia to relocate or redesign it to fit with the new space.
How many greens staff will we need at Wainui?
This
is a critical aspect of the budgeting which the Board and staff have been
researching over the past few months.
We have sought advice from Grant Puddicombe and the NZ Sports Turf Institute as well as looking at the levels of staffing at some other similar size/quality clubs.
We have sought advice from Grant Puddicombe and the NZ Sports Turf Institute as well as looking at the levels of staffing at some other similar size/quality clubs.
There
is no doubt we will need a lot more staff than we currently have.
The course is much larger and there is also the additional 9 hole par 3 course.
What is important in the first few years is that we get control of the grasses in particular the fescues so we have a pure strain which in time will require less inputs.
It is about long term management for short term cost.
We are considering a permanent team with additional seasonal staff during the peak growing periods.
The course is much larger and there is also the additional 9 hole par 3 course.
What is important in the first few years is that we get control of the grasses in particular the fescues so we have a pure strain which in time will require less inputs.
It is about long term management for short term cost.
We are considering a permanent team with additional seasonal staff during the peak growing periods.
Will members be able to use their own carts at Wainui?
No.
We will have a fleet of carts available at Wainui all with the same professional look to match the image of our golf course.
There will be a special rate for members’ to use the carts.
We will have a fleet of carts available at Wainui all with the same professional look to match the image of our golf course.
There will be a special rate for members’ to use the carts.
How many members are we expecting to have a Wainui?
In
our heyday we had over 1,000 members but like most clubs we have been declining
since those times.
Our membership currently stands at 669 and even this makes us one of the larger clubs in the country.
Only 11% of NZ clubs have more than 600 members.
Our membership currently stands at 669 and even this makes us one of the larger clubs in the country.
Only 11% of NZ clubs have more than 600 members.
It
is important however that we grow this number to cover the increased costs at
Wainui and to this end we are looking at offering a variety of new membership
categories to better suit different ages and different lifestyles.
Board
of Management
Peninsula
Golf Club Inc.,
Posted
10/06/2015
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PGC - 6 March 2015 FAQ document
6 March 2015
Good afternoon
Members
There have been a number of questions that have been asked
and also clarification around some of the matters raised in the Notice of
Motion. The Board hopes that the following is of assistance.
And also to advise you Fletchers will be represented at the
meeting on Monday.
Q What has happened
since 2013 meeting that makes PLDL come back to the Club to change the
agreement?
A. They have a good working
arrangement with Fletchers and for PLDL it makes good sense to borrow the
balance of the funds from Fletchers to complete the project and to prevent any
delay in completion when they are making good progress.
Q Is the $11 million
secure?
A. The agreement
provides for Fletchers to pay this sum to PGC.
PLDL can only draw
down $18.875m under their mortgage to fund the rest of its contractual
obligations to PGC.
The
Final payment under our existing agreement was always subject to final costs to
complete and PLDL’s viability.
Q Has the Board
taken Legal Advice on the proposal?
A. Yes it has worked
through the risks and the contractual requirements with its lawyers Claymore
Partners Limited. They are working to ensure the Club is protected to the
maximum extent possible.
Q What security does
the Club have?
A. Is has
contractual rights over the amount being borrowed from Fletchers.
None of the monies
secured under the mortgage can be used for anything other than completion of
the Golf Course, Clubhouse and Amenities and payment of the amounts payable by
PLDL to PGC.
Q Did the Board
consider it a possibility that PLDL would come back to it with another
variation to the original development agreement?
A. It was
always a possibility as the reality for PLDL is the financing model for
developments has changed and PLDL had only been able to start construction by
the variation agreed to in 2013.
The Board had confidence in the way the payments made to
PLDL by Fletchers were secured and only applied to meet PGC needs and not used
for anything else PLDL might be committed too.
If the borrowing had been in any other way PGC would not
have control over the payments and the manner of the drawdown.
Q How is PGC protected
against PLDL defaulting on its agreement as varied?
A. It has
security over the mortgage from Fletchers and therefore if PLDL is in breach
the Club can step in under its security and direct the funds to be applied to
complete any contracts PLDL has related to the construction of the Golf Course,
Clubhouse and amenities.
It has under the
variation in December 2013 step in contracts that allow us to take over the
Golf Course construction contract if PLDL defaulted.
Q Is PLDL in
default under their agreement with us?
A. It is not
currently in breach but it will be if it does not secure funding and continue
with the construction works at Wainui.
The current variation
will avoid PLDL being in breach and will ensure continuity of the construction
works at Wainui (thereby avoiding any delays in construction of the new course
and facilities).
If the variation is
not approved and PLDL breaches its obligations under the Development Agreement
the construction work at Wainui will cease and PGC will need to sell the Stage
3 and 4 to fund the remaining work.
The risks associated
with this are clearly set out in the Notice of Meeting.
Q What is the value
of stage 3 and 4?
A. Our valuation
evidence in December 2013 was in direct conflict with the evidence of PLDL
Valuer’s.
If PLDL defaulted it
would take time to find a buyer prepared to wait until we moved.
The present
agreements that PLDL have with Fletchers for part of stage 3 and Metlifecare
for part of stage 4 provide for repayment of most of the sums secured under the
Mortgage.
Q
Why is 1 October 2016 the date we have to vacate the area occupied by PGC?
A. PLDL have
contractual obligations with Fletcher’s to supply sections in stage 3 as well
as the overall requirement to meet roading and stormwater and other utilities
for the entire subdivision.
The variation
entered into in December 2013 was on the basis that PLDL would have access to
recover some of the costs of meeting their obligations to PGC and to avoid
making the project financially unviable.
Q Is the course at
Wainui on track?
A. Of all the pieces
to the puzzle this is the most important and Grant Puddicombe and his team are
ahead of schedule. And the weather is playing its part although some rain would
be beneficial.
Q What determines our
obligation to vacate Red Beach before 1 October 2016?
A. It is still
construction of the Golf Course, the Clubhouse and various other buildings and
amenities in the agreements. The use of the course for play is determined by
the New Zealand Sports Turf Institute and not PLDL.
Q The $500,000 to be paid by PLDL will be used for what?
A. To cover the
anticipated deficit for this year and to ensure we do not have to use the $1ml
deposit to fund it.
It also allows PGC to
pay for advice and consultants to help manage the project and to complete the rebranding and marketing, all of which are
essential to keep the cost of membership under control.
Board
of Management
Peninsula
Golf Club Inc.,
Posted 6/03/2015 4:13:07 p.m..
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PGC - FAQ
Document October 2014
PENINSULA
GOLF CLUB AND THE NEW COURSE AT WAINUI
Frequently
Asked Questions
8 October
2014
The
transition playing arrangements
1. When will we be playing 9 at Wainui and 9 at Peninsula?
This could
still happen depending on the weather but the feedback from the questionnaire
was that the majority of members would prefer to go to Wainui when 18 holes is
in play and we can leave the current course behind.
2. When will we be playing 18 holes and socialising in the new
club rooms?
The date we
are aiming for is Easter 2016. Of course that is weather dependent but we will
have a very good idea once we get through next winter and into the final
construction season.
3. When will the ‘fun’ 9 hole course be ready?
The driving
range and 9 hole par 3 course will be the last areas to be constructed. This is
expected to start in the final construction season commencing October 2015.
The new
course
4. What is the name of the new club? Will
there be an opportunity for the members to have input into the name?
No decision
has been made yet. There is a view from some long serving members that we
should retain the present name. But the business advice we are getting is that
we should change the name to maximise the advantage of creating a new golf
course and destination. This is something that is important from a marketing
point of view. The Board is keen that all our members have a say in this and we
will be in touch with you when the time comes to make this decision.
5. Is Wainui going to be a championship
course that will be too hard for me to play?
The course
is being built to accommodate all levels of players from the pro’s, who will
play from the tips, to the” hacker”, who loves nothing better than to spoil a
good walk. There are 5 tees and, using the mantra which the PGA of American
uses, you will be encouraged to “go forward” and play-off the tees that will
give you the greatest enjoyment.
6. Are there going to be toilet facilities
and water on the course?
Yes. The
plan provides for toilets and restrooms as well as drinking fountains. With concrete
cart paths we will also have the opportunity to provide a drinks cart for
refreshments as you play. There is an old farm building by the 6th and 15th
tees which, with a little TLC, could provide shelter as well as the opportunity
for a halfway house.
The new
clubhouse and facilities
7. When will they start building the
Clubhouse?
The new
clubhouse will start this year and the plans accommodate not only the members
interests but will also give us some commercial opportunities that will help with
generating additional income.
8. What other facilities are being planned?
Is there going to be a gym, a tennis court, a bowling green and/or a swimming
pool?
Yes. There
will be a gym and tennis courts. PLDL have committed to building the two tennis
courts. A bowling green is a possibility. A swimming pool is not proposed.
9. Is there going to be enough parking?
Yes. There
will be over 200 car parks - more than we presently have.
10. Will I be able to get my own locker?
Will I be able to leave my clubs there?
Yes. Both
the men’s and women’s changing rooms will have lockers. There will be provision
for golf club storage near the changing rooms for members use.
Membership
11. Why are we still taking new members?
We need to
keep paying the bills. Most of our income is from subscriptions and we need
this to maintain the existing Clubhouse and golf course, to meet our
obligations to staff and to pay for additional costs related to the move to
Wainui. The Board keeps a close eye on membership trends and if it is deemed
necessary we may consider capping the number of full playing men until we move
to Wainui. We had 7 new members this month – three Juniors, three 9 hole
players and one 6 day member.
12. Has the Board considered a rebate for
existing members who stick with the club during the transition period?
We
considered a rebate but our preference has been to find another golf course
which would provide for 18 holes of play. However your loyalty to the club, if
you stay with us over this time, will not go unrecognised – see question 15.
13. Why can’t I become a 6 day member, then
go back to full playing when we are at Wainui or why can’t I join another club
and become a social member at Peninsula to hold my place until we move?
You can
choose to do this. What we know is that there are a lot of golfers in Auckland
who are waiting for the new golf course to open and have expressed an interest
in joining. We currently have 366 full playing members and we think the
capacity at the new course will be around 400 to ensure that those paying the
most get access to the Course on the weekends in particular.
However
choosing either of these options is not helpful for the club as we still need
to generate income from subscriptions to run the club and to ensure that the
transition to Wainui happens without spending any of our capital. Retaining our
membership is very important over the transition period which is why we have
worked hard to negotiate the Gulf Harbour deal and also why we will be creating
a “loyalty” membership category at Wainui to reward those who stick with us –
see Question 15.
And by
dropping to six day you also lose the benefit of a rebated membership after 25
years as a Full Playing Member and attaining the age of 65 (whichever is the
latter) if this is of interest to you.
Finances
14. What are the fees for the new course
likely to be?
This has
not been determined yet. The Board will be developing a Business Plan this year
that will establish what income we need to sustain not only the golf course and
the Clubhouse but also the services which the members will expect.
The advice
that we have received is that we should not undervalue the “gate”. The
facilities will be second to none in New Zealand - of that we are confident.
15. Will there be a two tier pricing
arrangement – one for existing members and one for new members?
There will
be a two-tiered subscription. The current members who remain loyal will be
rewarded. It is hoped that by the end of the year we will be able to give a
clearer indication as to what the differentiation will be.
Any new
members who join the club from February of this year are being told that they
cannot expect to receive the benefits that existing members will get.
The message
here is that if you stay, and put up with the inconvenience of playing on
what’s left of the course for the next 18 months, you will pay a reduced sub
for playing on what will be the best golf course in Auckland.
16. What are the plans for the $12million?
Broadly
speaking we are expecting to spend about $2M on furbishing the Clubhouse and
purchasing the machinery needed for the new course. The course superintendent
has already been working on a proposed machinery list.
Subject to
accounting and tax advice, the remaining $10M will be ring fenced and invested
to provide long term security for the club from the capital and income earned.
We will be seeking expert advice on this matter.
Unfortunately
there are some things beyond our control right now such as the weather,
consents and the number of people choosing to re-join. But we hope this helps
to answer some of your questions and that you decide to stay with Peninsula. We
really value your support and would be delighted if you choose to stay with us.
We will provide you with a further update next month so if you think of any
more questions please send them to sarahjdunning@gmail.com
Posted 8/10/2014 5:43:25 p.m.
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